In a move to stimulate economic growth and provide relief to borrowers, the Monetary Board of the Central Bank of Sri Lanka has decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 200 basis points each. The SDFR now stands at 11.00 percent, while the SLFR has been adjusted to 12.00 percent.

The decision to lower interest rates comes as the Central Bank aims to encourage borrowing and investment in the country. With the SDFR cut, commercial banks will find it more affordable to park excess funds with the Central Bank, potentially leading to increased lending to businesses and individuals. The reduction in the SLFR is expected to provide cheaper borrowing options for those seeking credit.